Wall Street To Open In The Red

(RTTNews) - Tension between the U.S. and China might escalate as China has ordered to close the U.S. consulate in the city of Chengdu. This is in reaction to the U.S. ordered to close China's consulate in Houston, Texas, accusing Chinese citizens of stealing scientific research. China reportedly has given time till Monday to close the U.S. consulate in Chengdu.

Early signs from the U.S. Futures Index suggest that Wall Street might open lower. Asian shares finished mixed, while European shares are down on the day. A report on new home sales may attract some attention on Friday, although traders are also likely to keep an eye on rising tensions between the U.S. and China and the latest coronavirus news.

On the earnings front, Intel (INTC), E*Trade (ETFC), Mattel (MAT), and Skyworks (SWKS) are among the companies releasing their quarterly results after the close on Friday. As of 8.25 am ET, the Dow futures were down 97.00 points, the S&P 500 futures were declining 11.50 points and the Nasdaq 100 futures were sliding 107.00 points.

The U.S. major averages closed lower. The Dow tumbled 353.51 points or 1.3 percent to 26,652.33, the Nasdaq plunged 244.71 points or 2.3 percent to 10,461.42 and the S&P 500 slumped 40.36 points or 1.2 percent to 3,235.66.

On the economic front, the Markit Economics' the flash Composite Purchasing Managers' Index or PMI for July will be issued at 9.45 am ET. The consensus is for an increase of 50.3, while it was 46.8 in the prior month.

The Commerce and Housing and Urban Developments New Home Sales for June be released at 10.00 am ET. The consensus is for 700K, slightly up from 676K in the previous month. Baker-Hughes Rig Count for the week will be published at 1.00 pm ET. In the prior week, the North American Rig Count was 285, while U.S. Rig Count was 253.

Asian stocks fell on Friday on weaker-than-expected U.S. employment data and concerns on U.S.-China tensions.

Chinese shares led regional losses as tensions between the U.S. and China worsened. The benchmark Shanghai Composite index plummeted as much as 128.34 points, or 3.86 percent, to 3,196.77, while Hong Kong's Hang Seng index ended down 557.67 points, or 2.21 percent, at 24,705.33.

Japanese markets were closed for the Sports Day holiday.

Australian markets fell sharply, dragged down by tech stocks. The benchmark S&P/ASX 200 tumbled 70.50 points, or 1.16 percent, to 6,024. The broader All Ordinaries index ended down 65.90 points, or 1.06 percent, at 6,148.

European shares are trading mostly higher. Among the major indexes in the region, the CAC 40 Index of France is down 64.75 points or 1.57 percent. The German DAX is losing 205.60 points or 1.57 percent, the U.K. FTSE 100 Index is lowering 73.54 points or 1.18 percent.

The Swiss Market Index is sliding 132.41 points or 1.28 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 1.40 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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